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A suggestion for e-commerce bosses: In the next decade, aim for slower growth

2024-10-30


Author | Lao Gao


In the next ten years, whether it is starting a business or starting a business, it will be very difficult.


If someone tells you that the environment is good and advises you to start a business, this person is definitely a liar. In the future, only bosses with a score above 80 can succeed. I don’t recommend that you persist if you score below 80.


Because many new problems will appear during the low-speed growth period, such as agreement performance, employee relations, tax issues, business management, as well as uncontrollable performance changes and traffic instability. Once traffic or sales deviates slightly, huge expenses such as inventory, team, and personnel are at high cost, and the company is prone to burst.


There are also some companies that transition to pursue false prosperity. I am very proud of my performance of more than one billion yuan a year. I didn’t make much money after the end of the year, and even lost tens of millions of dollars, which finally put the company in trouble.


I believe that these bosses who made a big scale but eventually went bankrupt were confident, smart, and thoughtful at the beginning. Because now is not as good as in the past. Ten years ago, if you tried 1 point, you would get 3 points. Now you may only have half a point, or even no. We would rather grow slower now and even in the next few years than have any operating risks.



If you are still insisting on building a business, I will give you a word to make the company smaller and make the profit bigger, and pursue the maximum net profit with the smallest cost . Which one is better, if you make a profit of 10 million yuan with an annual sales of 500 million yuan, or if you make a profit of 30 million yuan with an annual sales of 100 million yuan? Obviously the latter.


Nowadays, labor costs and risks are too high, and the policy of private enterprises to hire employees is not particularly friendly. Moreover, the application scope of artificial intelligence will become more and more widespread in the future, and most positions, including copywriting, artwork, and then to customer service, will be gradually replaced. Therefore, the future development trend of the company is towards the direction of being less and more refined.


In 2019, I took the member bosses of the Golden Crown Club to visit Pinduoduo. At that time, their performance was already very large and the company had only 3,000 people. I was surprised.


Therefore, in the future, your company should prioritize hiring 30 high-end talents with a monthly salary of 100,000, rather than 300 ordinary employees with a monthly salary of several thousand. The team must be small and refined. Don’t envy companies with a scale of thousands of people, but become companies they envy. Buffett has only 25 people in the headquarters, and they are all top talents in the world. The company is still in a small county town with an annual income of 500 billion yuan. You can check it out because I have been investing in equity for 7 years and it is clearer.


Seeing this, are those falsely prosperous companies still proud? The future business model compares who will make 1 billion yuan a year, and a net profit of 300 million to 500 million is a good company, rather than a company with a scale of thousands of people making only tens of millions of profits.


The future development trend of enterprises is to develop efficiently and reduce unnecessary actions, so that all you save is profit.


Take Pinduoduo as an example. They never do a lot of complicated actions, just do the sinking market. If they only think about and execute this thing, they will definitely do it well.


Just like our " Golden Crown Club " , we don't do other things, but we are committed to the ultimate customer experience, customer service and circle quality, helping more than 200 member companies grow steadily. At present, several member companies of " Golden Crown Club " have annual turnover exceeding 10 billion. One of the members had a revenue of 30 million yuan when they joined the club in 2013, and by this year it had already reached 10 billion yuan; another member achieved sales of more than 5 billion yuan from January to May this year.


There are also many listed companies, including Yongyi Furniture and Beingmi's bosses, who have experienced decades of ups and downs in business. After experiencing so many of our excellent e-commerce business models, they know the value of it. They are very surprised and actively joined the " Golden Crown Club " .


Such cases abound.


As a billion-level e-commerce boss, if you are still worried about finding directions, models, resources, business opportunities, and cooperation, you are welcome to join the " Golden Crown Club " and communicate directly with these "experienced people" to solve your needs and pain points!



Members' praise


This is a positive review by some members of our Golden Crown Club. I'm not persuasive enough to just talk about it. You can see what these billion-level e-commerce bosses say, they are all personal experiences.

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